Busting 5 Myths About VA Home Loans
Itâs true: VA loans have a bad reputation. However, while once mired in red tape, long closing times, and complicated rules, the Department of Veterans Affairs has ensured VA loans keep pace with other mortgage programs. So, before you believe the negative hype, read on as we bust the most common VA home loan myths.
Myth 1: You Must Have Perfect Credit
The need to have perfect credit is one of the biggest VA loan myths. While VA-approved lenders will only grant loans to those who qualify, the VA does not set the minimum credit score. Instead, lenders have their own credit score requirements and are even encouraged to apply flexibility when evaluating the borrower’s credit, debt, and income.
Myth 2: It Takes Forever to Obtain Eligibility CertificationÂ
Another common VA loan myth is that obtaining the certification necessary to qualify for a VA loan is difficult and time-consuming. In truth, service members are eligible after only serving 90 consecutive days of active duty during wartime, 181 days during peace, or six years in the National Guard or Reserves. A quick verification is done electronically.
Myth 3: Inspections are Time-Consuming
The VA and appraisal process were once time-consuming and cumbersome, but things have changed drastically. Last year, VA loans closed within an average of 55 days, only one day longer than FHA loans and six days more than the average time it takes to close a conventional mortgage.
Myth 4: Sellers are Reluctant to Accept VA Loan Offers
Getting an offer from a VA-approved buyer is one of the safest, most competitive offers. Why? Because VA loans close at a higher rate. Ellie Mae reports that VA home loans close at 74.3 percent compared to 74.1 percent for traditional mortgages.
Myth 5: VA Loans Come with Hidden Costs
Another common VA home loan myth is that VA home loans come with hidden costs. On the contrary, VA home loans do not require mortgage insurance and, generally, no down payment. VA home loan borrowers pay appraisal, origination, and title fees like any borrower. And, unless exempt, they will also pay a one-time VA-funding fee, but no other hidden fees.
VA Loan Advantages
VA loans offer many advantages for active and veteran service members. The biggest three are: VA loans do not require mortgage insurance, down payments, or a specific credit score.
Contact Us to Get Started on Your VA Loan
Are you ready to secure some of the best VA loan rates in the nation with National Home Loans? Our VA loan experts are ready to help you! Contact us to request rates today.
